Comments on: Less than 1% of the city’s population accounted for more than half of its lethal incidents

By: Felix

Felix — Sun, 25 Aug 2019 19:52:59 +0000

Aretae, thanks. That’s very clear!

Hmmm. Gotta remember such a distribution may curve differently at the extremes than overall.

Aretae — Sun, 25 Aug 2019 14:49:21 +0000

Felix,

Apologies for lack of clarity.

80% of 80% is 64 %. I rounded to 65. Sometimes to 2/3
20% of 20% is 4%. I rounded to 5.

80% of 80% of 80% is 51.2%. I rounded to 50.
20% of 20% of 20% is 8/1000. I rounded to 1%

If the pareto principle is:
20% of the inputs cause 80% of the outputs

Then pareto squared is that 4% of the inputs cause 2/3 of the outputs

And pareto cubed says that 1% of the inputs cause half the outputs.

Felix — Sat, 24 Aug 2019 23:29:54 +0000

Aretae, could you explain your arithmetic in simple terms? I don’t get the where and why of any multiplication.

Thanks.

Aretae — Sat, 24 Aug 2019 16:24:17 +0000

The Pareto principle is multiplicative.

80/20
65/5
50/1

50% of insurance costs are 1% of the people
50% of customer service calls are 1% of the people
50% of the crime…

Etc.